Progress Story

PRGS -- USA Stock

USD 44.14 4.67 9.57%

Macroaxis Story

Progress Software is scheduled to announce its earnings today. The next earnings report is expected on the 21st of January 2021. Progress Software Calculated Tax Rate is relatively stable at the moment as compared to the past year. Progress Software reported last year Calculated Tax Rate of 6.62. As of 09/29/2020, Accounts Payable Turnover is likely to grow to 45.54, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 78.2 M. While some of us are becoming more enthusiastic about technology space, let's sum up Progress Software in greater detail to make a better estimate of its debt utilization. We will discuss if it could be a much better year for Progress Software shareholders.

Published over three months ago

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Will Progress Software (NASDAQ:PRGS) be in financial trouble before October?

The company currently holds 325.46 M in liabilities with Debt to Equity (D/E) ratio of 0.96, which is about average as compared to similar companies. Progress Software has a current ratio of 1.26, suggesting that it may have difficulties to pay its financial obligations when due.

Progress Software financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Progress Software, including all of Progress Software's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Progress Software assets, the company is considered highly leveraged. Understanding the composition and structure of overall Progress Software debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Progress Total Liabilities

Progress Software liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Progress Software has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Progress Software balance sheet include debt obligations and money owed to different Progress Software vendors, workers, and loan providers. Below is the chart of Progress short long-term liabilities accounts currently reported on its balance sheet.

You can use Progress Software financial leverage analysis tool to get a better grip on understanding its financial position

How important is Progress Software's Liquidity

Progress Software financial leverage refers to using borrowed capital as a funding source to finance Progress Software ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Progress Software financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Progress Software's total debt and its cash.

A Deeper Perspective

The big decline in price over the last few months for Progress Softwaremay encourage retail investors to take a closer look at the company as it is trading at a share price of 37.28 on slow start in trading volume. The company executives failed to add value to investors and positioning the company supply of money to exploit market volatility in August. However, diversifying your holdings with Progress Software or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.95. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Progress Software partners.

Liabilities Breakdown

266 M

Current Liabilities

140.3 M

Long-Term Liabilities

	Total Liabilities	535.04 Million
	Current Liabilities	265.98 Million
	Long-Term Liabilities	140.28 Million
	Tax Liabilities	5.81 Million

Our perspective of the latest Progress Software spike

The maximum drawdown is down to 7.94 as of today. Progress Software is displaying above-average volatility over the selected time horizon. Investors should scrutinize Progress Software independently to ensure intended market timing strategies are aligned with expectations about Progress Software volatility.

The Current Takeaway on Progress Software Investment

While some other entities in the software?application industry are either recovering or due for a correction, Progress Software may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 29th of September 2020, we believe that Progress Software is currently fairly valued with below average probability of financial unrest in the next two years. Our actual 30 days buy-hold-sell recommendation on the enterprise is Hold.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Progress Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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